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2/22/17
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Sagebrush Capital Holdings, out of Denver, acquired a two-property, fully occupied apartment portfolio totaling 320 units in Victorville in a recent transaction with a price tag of $27.4 mil ($85.6k/unit). The seller in the deal was Dublin, CA-based Thomas Tomanek & Assoc.
The properties, which are located approximately 2.5 miles apart, are both garden-style assets built in 1988 and renovated in 2014. In total, they include 41 two-story buildings and are situated on just under 17 acres of land.
The portfolio, situated close to the I-15, includes The Colony Apartments, a 200-unit community located at 14450 El Evado Rd, and Golden Sands Apartments, a 120-unit community located at 15930 Nisqualli Rd. The mix of units at The Colony is made up of two-bedroom and three-bedroom units, while the Golden Sands Apartments consists of a mix of one-bedroom and two-bedroom units. Both properties offer two pools, a basketball court, on-site management and maintenance, barbeque areas, and a playground.
David Baird with Sperry Commercial Global Affiliates represented both the buyer and the seller in the transaction. The closing cap rate was 6.5 percent.
“This transaction proved beneficial to both the buyer and the seller,” said Baird. “The seller, which is moving its portfolio to Northern California and has owned this property since 1998, was able to realize a significant return on investment. The buyer, which made its first acquisition in California with this transaction, acquired a quality, stabilized portfolio that stands to see a steady increase in rents and appreciation over the coming years in an up-and-coming tertiary market that continues to grow its job base and population.”
Located in Southern California along Interstate 15, 90 miles northeast of Los Angeles, the City of Victorville has successfully established itself among the most cost-effective locations in California to do business. Many businesses choose to operate in Victorville because of the investments the city has made in its public infrastructure system; proximity to major transportation routes; large, skilled labor force; family-friendly community; and commitment to promoting a business-friendly environment. Over the past 15 years, Victorville has experienced robust industrial and retail expansion, and is poised to continue that growth.
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